The Record Continues, Bank Indonesia Holds Benchmark Interest Rate Of 3.50 Percent

BI Governor Perry Warjiyo (Photo: screenshot of BI Youtube)

JAKARTA - Bank Indonesia (BI) chose to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) benchmark interest rate at 3.50 percent.

Likewise, the deposit facility and lending facility rates did not move, at 2.75 percent and 4.25 percent, respectively.

BI Governor Perry Warjiyo said this policy was taken based on the decision of the Bank Indonesia Board of Governors Meeting (RDG) which was held on July 20-21 this week.

"This decision is consistent with the estimated core inflation that is still under control amidst the risks of global economic impact on domestic economic growth," Perry said when giving a press statement through virtual channels on Thursday, July 21.

According to Perry, the monetary authority will continue to be aware of the risk of rising inflation expectations and core inflation going forward.

"BI will also strengthen the response to the necessary monetary mix, either through stabilizing the rupiah exchange rate, strengthening monetary operations and interest rates," he said.

For information, the BI rate of 3.50 percent has been maintained by Bank Indonesia since 2020 as part of efforts to overcome pressure due to the COVID-19 pandemic.

According to VOI records, this interest rate is also the lowest in BI's history.